50% OF NON PURCHASERS DO PURCHASE
Over 50% of the people identified as non-purchasers were actually LTCI purchasers someplace else.  Clearly, a majority of purchasers are now comparison shopping.  Approximately 68% of purchasers said they compared or analyzed policy features before purchasing. 

50% OF INCREASE IN BUYERS AT WORK
Some 35% of responding buyers reported still being actively at work, compared to 23% in a similar 1995 survey.  This represents an over 50% increase.

50% SPEND 1-3% OF INCOME
The survey also reported a number of respondents who are spending less of their income on LTCI.  Over half of respondents are spending between 1 and 3% on LTCI.  The average annual premium is $1,677.  Spending for inflation protection did not seem to vary much until income levels exceeded $50,000 (and then they were willing to spend about 10% more).  Also to keep premiums affordable, individuals over age 75 tend to reduce the duration of coverage.  Some 85% of respondents have benefits periods of 4 years or shorter.  By comparison, for purchasers ages 55 to 64, 42% of purchasers take lifetime protection.

50% OF NON PURCHASERS ARE RISK AWARE
Just over half (55%) of non-buyers responding to the survey know the fact that the likelihood of a nursing home stay is great than 50%.  The reasons given by non-purchasers for not obtaining coverage included:  cost (54%), waiting for better policy (29%), and hard to choose (18%).  Non purchasers, according to the study, in general were older (age 71 vs. average purchaser who is age 67).  Since health (underwriting) issues were excluded, this could be an important consideration.  The cost issue continues to suggest  the perception that LTCI is costly.

INCOME + ASSETS + EDUCATION= SALE
Compared to five years ago, purchasers reported increased levels of both income and assets.  This could be attributable to more dual-income households or the increased value or retirement assets (thanks to the growth of equities over the past five years).  For example, purchasers reporting assets of $30,000 or less accounted for 28% of policies sold in 1995.  In 2000, they accounted for only 11%.  Also, current buyers are significantly more likely to be college-educated.

INFLATION PROTECTION TRENDS
The survey notes continued increases in the purchase of policies with inflation protection-especially among younger buyers.  The breakdown of options selected included:  17% simple inflation protection; 22% compound; 2% indexed inflation.  Among buyers between the ages of 55 and 64, 56% purchased inflation protection.  That compared to only 14% fro ages 75+.  Individuals with incomes over $50,000 were much more likely to purchase inflation protection than those with lower amounts.